Thursday, October 6, 2016

Maximizing Votes at an HOA Meeting or Election

Since many HOAs conduct their annual and/or budget meetings this time of year, we are reprinting this post from 2014 about maximizing attendance at your HOA meetings.

Many HOAs and condominium associations have annual meetings coming up this time of year, or special meetings to amend their covenants, conditions and restrictions ("CCRs") or bylaws. What is the best way to collect the votes your HOA needs to elect a board or get that important change to the CCRs or bylaws passed?

1. Have you fostered a sense of community in your HOA? Consider a barbecue, pot-luck luncheon or kids' movie night at or before your meeting. Not only does this remind people that there are good people in the neighborhood and that it is fun to get to know your neighbors, but it also reinforces that the HOA is not just there to demand payment of dues and that you put your trash can away. A social event says, "Our HOA is made up of hard-working, well-meaning people who are trying to support the neighborhood - don't you want to get involved as well?" And if I learned anything in law school, it's that the presence of food is guaranteed to double the turnout of any meeting.

2. Schedule the meeting well in advance and at a day, time and location that is convenient to homeowners. This may go without saying, but board members are often retired or self-employed, and therefore may have more flexible schedules than other homeowners. Give some thought to making the meeting convenient and accessible to those with less-flexible schedules. You may even wish to provide child care if your neighborhood is one with many small children.

3. We advocate sending out a meeting notice by mail which includes a proxy. While you should always hold an actual meeting for elections and whenever an amendment to the CCRs is proposed, you can gather a lot of votes ahead of time by using the proxy process. Many HOAs already use proxies, which are simply limited powers of attorney allowing a person attending a meeting to cast votes on behalf of others who are unable to attend. All proxies should be in writing, signed, include the printed name and address or lot number of the homeowner granting the proxy, and state a date by which the proxy expires. These should be collected by the Secretary at the meeting and carefully counted and tracked. (We recommend having at least three people, at least one of whom is not a board member, counting votes at any annual or special meeting.) By law, a proxy can be given to any person, even a non-member of the HOA. While it is wiser to limit only HOA members to serving as proxies, most HOA's CCRs and bylaws do not do so. 

4. The North Carolina Non-Profit Corporations Act specifically allows voting by written ballot as well "unless prohibited or limited by the articles of incorporation or bylaws" (most don't). If no meeting is necessary, consider conducting the vote via written ballot instead. All members receive a ballot with clear instructions as to what they are voting on and a specific date by which all ballots must be returned. All ballots should require a signature or other means of verifying that the response is genuine and unique, and should include the printed name and address or lot number of the homeowner. All homeowners must receive a ballot and the opportunity to vote. Some HOAs even provide the ballot  on a postage-paid postcard or include a postage-paid return envelope to help make sure they get back to the HOA in time to be counted. You may also consider organizing block captains to go door-to-door to collect ballots and/or proxies for big votes.

Good luck with your upcoming membership meetings!

Please give us a call or drop us an email if our HOA law team can assist your HOA or management company with meetings, amendments to your HOA’s governing documents, or if we can be of assistance in any other way regarding legal issues facing your community. Please be aware that we represent HOAs only – we do not represent homeowners in disputes against their HOAs. We appreciate your reading our HOA law blog and encourage you to share it with others who may be interested. Thank you!